By: Averitt S.J.R. No. 39
SENATE JOINT RESOLUTION
proposing a constitutional amendment authorizing the issuance of
general obligation bonds to provide and guarantee loans to
encourage advanced clean energy projects.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article III, Texas Constitution, is amended by
adding Section 49-q to read as follows:
Sec. 49-q. (a) For purposes of this section:
(1) "Advanced clean energy project" means a project
for which an application for a permit to emit air contaminants is
received by the Texas Commission on Environmental Quality or its
successor after January 1, 2008, and before January 1, 2020, and
that:
(A) involves the use of coal, biomass, petroleum
coke, solid waste, or fuel cells using hydrogen derived from such
fuels, in the generation of electricity, or the creation of liquid
fuels outside of the existing fuel production infrastructure while
co-generating electricity;
(B) is capable of achieving on an annual basis a
99 percent reduction of sulfur dioxide emissions and a 95 percent
reductions of mercury emissions and an annual average emission rate
for nitrogen oxides of 0.05 pounds or less per million British
thermal units; and
(C) captures not less than 50 percent of any
carbon dioxide produced by the combustion of fuel and sequesters
that captured carbon dioxide by geologic storage or other means.
(2) "Geologic storage" means the underground storage
of carbon dioxide in a suitable geologic formation, including
storage that is accomplished in conjunction with an enhanced oil
recovery project.
(b) To provide and guarantee loans to encourage advanced
clean energy projects in this state, the legislature by general law
may authorize the Texas Public Finance Authority or its successor
to issue general obligation bonds of the State of Texas in an amount
not to exceed $300 million and to enter into related credit
enhancement agreements. The proceeds from the sale of the bonds may
be used only to make and guarantee loans to business entities for
advanced clean energy projects in this state.
(c) The bonds authorized under this section constitute a
general obligation of the state. While any of the bonds or interest
on the bonds is outstanding and unpaid, there is appropriated out of
the first money coming into the treasury in each fiscal year not
otherwise appropriated by this constitution an amount sufficient to
pay the principal of and interest on the bonds that mature or become
due during the fiscal year, including an amount sufficient to make
payments under a related bond enhancement agreement.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 3, 2009.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment authorizing the
issuance of general obligation bonds to provide and guarantee loans
to encourage advanced clean energy projects."